Interactive Brokers vs Morpher: Which Platform Fits You Best?

What is Interactive Brokers?

Interactive Brokers (IBKR) is a leading brokerage firm with a history dating back to 1978. It is well known for offering a broad range of investment options and tools designed for experienced traders and professionals. With access to over 150 global markets and various asset classes such as stocks, options, futures, forex, and bonds, IBKR appeals to those seeking advanced trading capabilities. However, its complex interface and fee structure can make it less suitable for beginners or casual investors who want a more smooth trading experience. 

Interactive Brokers Pros

1. Global Market Access: Users can trade across more than 150 markets in 33 countries.
2. Wide Range of Investment Products: Offers stocks, ETFs, options, futures, forex, bonds, and cryptocurrencies. (Different terms may apply; see below.)
3. Advanced Trading Platforms: The Trader Workstation (TWS) is equipped with tools for professional analysis and execution.
4. Regulatory Oversight: IBKR is highly regulated and adheres to strict financial guidelines.

Interactive Brokers Cons

1. Unintuitive User Interface: The platform can be overwhelming and complex, especially for beginners.
2. Complicated Withdrawal Process: Withdrawals require specific instructions, and additional withdrawals within a month incur fees.
3. Complex Pricing System: Tiered commissions and hidden charges make the fee structure difficult to understand for many traders. Commission-free trades are limited to U.S. stocks and ETFs with IBKR Lite account; fees apply to cryptocurrencies, commodities, and forex.
4. No Savings Plan for Small Investors: Uninvested cash under $10,000 earns no interest, limiting options for passive income.

Are You a Belgium-Based Trader Looking for a Trading212 Alternative?

If you’re a trader in Belgium searching for a Trading212 alternative, you’re likely aware that Trading212 is no longer available in Belgium. Many resources suggest Interactive Brokers as a substitute, but is it really the right fit for those who loved Trading212? 

We think not. Here’s why.

1. Only Practical for Niche Traders: IBKR shines for specific use cases like trading options or day trading with large amounts. For everyday investors or those trading in their own currency, a zero commission platform like Morpher remains a more practical option.
2. Higher Fees: While Trading212 offered 100% free trading in many cases, IBKR’s fee structure isn’t as appealing for smaller traders. Commission-free trading is limited to U.S. stocks and ETFs (only available with Lite version) while other assets like crypto, forex, and commodities come with added costs.
3. Outdated User Interface: IBKR’s platforms are often criticized for being outdated and unintuitive. Some users report frequent login issues and a 1990s-style interface that hasn’t evolved to meet modern standards.

If you’re not a professional day trader or options specialist handling large amounts, IBKR simply doesn’t fill the gap left by Trading212. But there’s a platform that does, and it’s right below.

What is Morpher?

Morpher is a trading platform founded in 2018, built on blockchain technology to offer a modern, accessible approach to global markets. By removing common barriers like high fees and minimum deposits, it provides a straightforward way for traders of all levels to access a wide range of assets. With zero commissions, no minimum deposits, and an intuitive interface, Morpher simplifies trading without compromising on features.

Morpher Pros

1. Zero Commissions on All Trades:
   Unlike many platforms, Morpher charges no commissions on any trades, whether you’re dealing with stocks, cryptocurrencies, commodities, or forex. 
2. Savings Plan with 11% APY:
   Morpher offers a Savings Plan with an annual yield of 11% on unused funds, giving traders an additional way to grow their money passively. 
3. Fractional Trading for Accessibility:
   You can trade fractional shares of any asset on Morpher, starting with as little as €1. This feature ensures accessibility for all traders, regardless of their account size or experience level.
4. User Friendly Platform:
   Designed with simplicity in mind, Morpher’s platform is easy to navigate, making it suitable for both beginners and experienced traders.

Morpher Cons

• No ETFs: Morpher does not support ETF trading.
• No Dividends: Since Morpher operates on a derivatives trading model, it does not distribute dividends on stocks.
• Limited Complex Features: Morpher does not offer certain tools like options contracts, futures contracts, or complex order types. These limitations may not appeal to traders with highly specific strategies. 

Is Morpher fit for advanced traders?

Morpher is designed not just for beginners, but also for advanced traders. One of the features that sets Morpher apart for advanced traders is its leverage trading system, which contrasts with IBKR’s margin accounts. Both platforms allow traders to amplify their trading power by borrowing funds, but the way each handles this process is quite different and this difference can significantly impact your trading experience.

IBKR Margin Accounts

Cost: IBKR offers a margin rate of 7.080%, which compounds over time. While this is competitive for long-term traders, the cost increases if the position is held for extended periods.

Eligibility: IBKR’s margin accounts require a minimum balance and a lengthy approval process, which can be a barrier for smaller traders or those seeking immediate access to leverage.

Risk: IBKR’s margin accounts don’t offer negative balance protection, meaning traders could lose more than their account balance in volatile markets, leading to debt.

Here you can find more information on IBKR margin accounts. 

Morpher Leverage Trading

Cost: Morpher applies a flat daily fee of 0.03% on net exposure, which doesn’t compound, making it easier to calculate and manage, especially for short-term trades.

Accessibility: No minimum balance or approval process is required to access leverage on Morpher, making it accessible to all traders.

Risk Management: Morpher offers negative balance protection, ensuring that you can never lose more than your account balance, which provides additional safety during market volatility.

Here you can learn more about how leverage trading works on Morpher. 

Is Morpher safe? 

Morpher prioritizes security by leveraging blockchain technology. All trades on Morpher are recorded on the Ethereum blockchain and can be verified using the Morpher Scan, ensuring complete transparency for every transaction. Unlike traditional brokers, Morpher uses non-custodial wallets, meaning you maintain full control over your assets at all times. This significantly reduces the risk of misuse, as your funds are never held by the platform itself. 

Morpher’s operations are regulated under EU laws in Austria, and it uses military-grade encryption to safeguard your data, ensuring a secure environment for traders. Morpher has highlighted this Trustpilot rating of 4.4, reflecting strong user satisfaction. 

Is Interactive Brokers safe?

Interactive Brokers is comparingly a well regulated platform, overseen by the SEC in the U.S. and the Central Bank of Ireland and Hungary for European operations. While generally safe and highly regulated, IBKR has faced significant fines, totaling $38 million, for failing to meet anti-money laundering requirements, including not filing Suspicious Activity Reports as required. 

For asset protection, IBKR offers €20,000 coverage under the European Investor Protection Scheme, with U.S. assets covered up to $500,000 by SIPC. However, cash in euros is not covered by a deposit guarantee scheme, though USD cash accounts are protected up to $250,000. On the downside, IBKR’s customer service is frequently criticized, with a Trustpilot rating of 3.0. 

Why does Morpher stand out?

We highlight in our Showdown series that every platform caters to different needs, and your choice is mainly based on what you are looking for. This time, it is evident that these two platforms speak to two different crowds. Interactive Brokers definitely deserves its praise for creating a professional, advanced broker platform. They offer very complex yet accomplished schemes that enable more advanced transactions and orders. As a user stated on a forum, “IB is exclusively for trading purposes” and “it’s not fancy for an everyday $100 investor.” So, if you are a finance professional with an extra couple hundred thousand dollars, congratulations, they can be a good option for you.

But there is nothing wrong with starting out with $100. Or even $10. Everyone should start somewhere, and the right platform should accompany you through your journey, not push you out of your comfort zone.

This is what Morpher is for. Since day one, Morpher has aimed for a democratized financial world where every type of investor and trader is welcome. No minimum amounts, no high commissions, no complex schemes. Simple, free trading for a solid foundation to reach endless limits with your investments. You can trade U.S. stocks, cryptocurrencies, commodities, and forex, all with zero commissions. Investing shouldn’t be complicated. Morpher makes it simple by providing everything you need in one single platform. Would you like to see it yourself? Create your Morpher account and start today.

Disclaimer: All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. This post does not constitute investment advice.